Correlation Between Ainsworth Game and Dalaroo Metals
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game and Dalaroo Metals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ainsworth Game and Dalaroo Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and Dalaroo Metals, you can compare the effects of market volatilities on Ainsworth Game and Dalaroo Metals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ainsworth Game with a short position of Dalaroo Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Dalaroo Metals.
Diversification Opportunities for Ainsworth Game and Dalaroo Metals
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ainsworth and Dalaroo is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Dalaroo Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalaroo Metals and Ainsworth Game is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ainsworth Game Technology are associated (or correlated) with Dalaroo Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalaroo Metals has no effect on the direction of Ainsworth Game i.e., Ainsworth Game and Dalaroo Metals go up and down completely randomly.
Pair Corralation between Ainsworth Game and Dalaroo Metals
Assuming the 90 days trading horizon Ainsworth Game Technology is expected to generate 0.46 times more return on investment than Dalaroo Metals. However, Ainsworth Game Technology is 2.17 times less risky than Dalaroo Metals. It trades about -0.01 of its potential returns per unit of risk. Dalaroo Metals is currently generating about -0.01 per unit of risk. If you would invest 110.00 in Ainsworth Game Technology on October 16, 2024 and sell it today you would lose (35.00) from holding Ainsworth Game Technology or give up 31.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Dalaroo Metals
Performance |
| Timeline |
| Ainsworth Game Technology |
| Dalaroo Metals |
Ainsworth Game and Dalaroo Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Dalaroo Metals
The main advantage of trading using opposite Ainsworth Game and Dalaroo Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game position performs unexpectedly, Dalaroo Metals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dalaroo Metals will offset losses from the drop in Dalaroo Metals' long position.| Ainsworth Game vs. Event Hospitality and | Ainsworth Game vs. Sonic Healthcare | Ainsworth Game vs. Hawsons Iron | Ainsworth Game vs. Epsilon Healthcare |
| Dalaroo Metals vs. Lendlease Group | Dalaroo Metals vs. Ras Technology Holdings | Dalaroo Metals vs. Ainsworth Game Technology | Dalaroo Metals vs. TPG Telecom |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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